Deutsche Bank picks 5% in HCC's Pune realty project
MUMBAI: Deutsche Bank Singapore has picked up 5% stake in Lavasa Corporation, a real estate project promoted by Hindustan Construction Company (HCC) at Lavasa near Pune, for Rs 500 crore. The deal values Lavasa Corporation at Rs 10,000 crore. Sources said Lavasa would issue fresh equity to Deutsche Bank. HCC was holding 65% in Lavasa through its real estate subsidiary, HCC Realty. Other partners in the project, the LM Thapar group and Venkateshwara Hatcheries, along with other minority stake holders, account for the remaining 35%.
When contacted by ET, Lavasa Corporation COO Rajgopal Nogja declined to comment on the deal. However, sources close to the development said a term-sheet had been signed between HCC and Deutsche Bank last week. The deal makes it one of the largest investments by Deutsche Bank in India's real estate space. A few weeks ago, Deutsche Bank invested around Rs 1,700 crore in a special purpose vehicle (SPV) floated by Mumbai-based Lodha group. HCC plans to build hotels, convention centres, apartments and houses in Lavasa. The company's assessment is there is a market, particularly amongst younger people, for a getaway close to Pune. It has already acquired 12,500 acres for the township project. The firm has already commenced construction of the project and has signed agreements with international hotel chains like Starwood Hotels and Resorts and Accord to manage hotel properties within the township. Earlier, HCC had said Lavasa would be a blend of cosmopolitan architecture, imaginative planning and environment ideals, planned and based on the principles of new urbanism. Last month, HCC had also signed an agreement with hospital major Apollo Hospitals Group to set up an integrated healthcare and wellness hospital at the Lavasa Hill town near Pune. The Lavasa-Apollo JV hospital, which is coming up on 200 acres of land in the Lavasa Hill town, will initially develop a multi-specialty hospital with a capacity of 50 beds, which will be ready by 2009.
When contacted by ET, Lavasa Corporation COO Rajgopal Nogja declined to comment on the deal. However, sources close to the development said a term-sheet had been signed between HCC and Deutsche Bank last week. The deal makes it one of the largest investments by Deutsche Bank in India's real estate space. A few weeks ago, Deutsche Bank invested around Rs 1,700 crore in a special purpose vehicle (SPV) floated by Mumbai-based Lodha group. HCC plans to build hotels, convention centres, apartments and houses in Lavasa. The company's assessment is there is a market, particularly amongst younger people, for a getaway close to Pune. It has already acquired 12,500 acres for the township project. The firm has already commenced construction of the project and has signed agreements with international hotel chains like Starwood Hotels and Resorts and Accord to manage hotel properties within the township. Earlier, HCC had said Lavasa would be a blend of cosmopolitan architecture, imaginative planning and environment ideals, planned and based on the principles of new urbanism. Last month, HCC had also signed an agreement with hospital major Apollo Hospitals Group to set up an integrated healthcare and wellness hospital at the Lavasa Hill town near Pune. The Lavasa-Apollo JV hospital, which is coming up on 200 acres of land in the Lavasa Hill town, will initially develop a multi-specialty hospital with a capacity of 50 beds, which will be ready by 2009.
Deutsche Bank Singapore has picked up 5% stake in Lavasa Corporation, a real estate project promoted by Hindustan Construction Company (HCC). It proves that India has emerged as one of the strong real estate market in recent years. This is the main reason most of the property builders and real estate developer investing huge money in Indian real estate market.
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